# Volex plc (VLX.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Industrials / Electrical Equipment. Price 631p, market value 1.2 billionp.

## Valuation
- **P/E (trailing): 24.3×** (5-yr avg 1227.4×, 3-yr avg 1211.4×). Volex plc trades at 24.3× trailing earnings, well below its own five-year average of 1227.4×: cheap by its own standards. The Industrials median in the September 2026 study was 25.7×. Forward P/E is 15.1×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.49**. A PEG of 0.49 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 0.7×**. Each dollar of revenue is priced at 0.7×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 3.5×**. The shares trade at 3.5× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 6.3×**. Enterprise value is 6.3× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 4.7%** (5-yr avg 0.1%). Free cash flow equals 4.7% of the market value, above its five-year average of 0.1%, so the shares are cheaper on cash than they have usually been.
- **Earnings yield: 4.1%**. The inverse of the P/E: 4.1% of the price is earned each year.

## Profitability
- **Gross margin: 21.5%**. Volex plc keeps 21.5% of revenue after the direct cost of what it sells, a thin margin typical of retail, distribution and commodity businesses.
- **Operating margin: 8.4%**. 8.4% of revenue is left after running the business.
- **Net margin: 5.3%**. 5.3% of each dollar of sales reaches the bottom line.
- **Return on equity: 14.7%**. 14.7% on shareholders' equity is solid.
- **Return on invested capital: 24.5%**. Return on all capital, debt included, is 24.5%: comfortably above what that capital costs.
- **Return on assets: 11.0%**. Each dollar of assets produces 11.0% of profit.

## Growth
- **Revenue growth (1 yr): 12.5%** (3-yr 18.2%/yr, 5-yr 21.2%/yr). Revenue grew 12.5% over the last year, against 21.2% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): 30.8%** (3-yr 13.9%/yr, 5-yr 6.3%/yr). Earnings per share rose 30.8%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): -0.1%/yr**. Free cash flow has compounded at -0.1% a year over three years, lagging earnings: check whether profits are turning into cash.

## Financial health
- **Debt to equity: 0.47**. Debt is 0.47 times equity: a conservative balance sheet.
- **Net debt / EBITDA: 0.6×**. It would take 0.6 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 4.3×**. Operating profit covers interest 4.3× over, a safe margin.
- **Current ratio: 1.74** (quick 0.96). Current assets cover the next year's liabilities 1.74 times.
- **Altman Z-score: 3.59**. A Z-score of 3.59 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 7/9**. 7 of 9 fundamental checks pass: strong and improving financials.

## Dividends
- **Dividend yield: 0.79%** (0p per share, trailing). Volex plc yields 0.79%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 13%** (24% of free cash flow). 13% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 4**. 4 straight years of increases.
- **Dividend growth (5 yr): 2.3%/yr** (1-yr 7.0%). The dividend has grown 2.3% a year over five years.
- **Shareholder yield: 1.5%**. Dividends plus net buybacks return 1.5% of the market value a year.

## Analyst view
- **Analyst consensus: strong_buy** (7 analysts). 7 analysts cover Volex plc; the consensus is strong_buy, with an average price target of 714p (+13% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 81.0%** (YTD 48.1%, 3-mo -1.1%). The shares are up 81.0% over twelve months including dividends.
- **From 52-week high: -11.1%** (94.2% above the low). Trading 11% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 63**. An RSI of 63 is neutral.
- **Beta (1 yr): 0.93** (volatility 42%). Beta of 0.93 against the FTSE All-Share: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=VLX.L · Page: https://foliofundamentals.com/stocks/vlx.l

Not investment advice.